ze full year’s amortization in the year of acquisition and none in the year of derecognition. How much is the gain(loss) on disposal reco
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Alliyah Co. was granted a patent on January 1, 20x1. The patent was appropriately recognized at P 800,000 and estimated to have a useful life of 10 years. In 20x3, Alliyah Co. incurred P 100,000 in successfully depending the patent in an infringement suit. However, two months after the suit, the company sold the intangible asset to the plaintiff for P 600,000. It is the company’s policy to recognize full year’s amortization in the year of acquisition and none in the year of derecognition. How much is the gain(loss) on disposal recognized in the company’s 20x3 statement of profit or loss?
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- Alliyah Co. was granted a patent on January 1, 20x1. The patent was appropriately recognized at P 800,000 and estimated to have a useful life of 10 years. In 20x3, Alliyah Co. incurred P 100,000 in successfully defending the patent in an infringement suit. However, two months after the suit, the company sold the intangible asset to the plaintiff for P 600,000. It is the company’s policy to recognize the full year’s amortization in the year of acquisition and none in the year of derecognition. How much is the gain(loss) on disposal recognized in the company’s 20x3 statement of profit or loss?On Jan 1, 20X1, ABC Corp purchased a patent for P90,000. At the time of purchase the patent was valid for 15 years, however the patent's useful life was estimated to be only ten years due to the competitive nature of the product. On Dec 31, 20X3, the product was permanently withdrawn from sale in the market due to its potential damage to environment. What amount should ABC charge against revenue at Dec 31, 20X3?On January 1, 2009, Jonalyn Company purchased a patent from an original patentee for P2,400,000. The remaining legal life of the patent is 15 years but the useful life is only 12 years. On January 1, 2010, the entity paid P550,000 in successfully defending the patent in an infringement suit filed against the entity. On January 1, 2011, the entity acquired a competing patent for P1,500,000. The competing patent has a remaining legal life 15 years but it is not to be used because it was intended to protect the original patent. Question: What is the carrying amount of the patent on December 31, 2011?
- Drexler incurred P234,000 of experimental and development costs in its laboratory to develop a patentwhich was granted on January 2, 20x4. Legal fees and other costs associated with registration of thepatent totaled P49,200. Management estimates that the useful life of the patent will be eight (8) years. 7. What is the carrying amount of the patent on December 31, 20x4?Shamrock Industries had one patent recorded on its books as of January 1, 2025. This patent had a book value of $202,100 and a remaining useful life of 8 years. During 2025, Shamrock incurred research and development costs of $98,000 and brought a patent infringement suit against a competitor. On December 1, 2025, Shamrock received the good news that its patent was valid and that its competitor could not use the process Shamrock had patented. The company incurred $102,000 to defend this patent. At what amount should patent(s) be reported on the December 31, 2025, balance sheet, assuming monthly amortization of patents? (Round all computations and the final answer to zero decimal places.) The amount to be reported $Novato Inc. went to court this year and successfully defended its patent from infringement by a competitor. The cost of this defense should be charged to a. patents and amortized over the remaining useful life of the patent b. expenses of the period O c. patents and amortized over the legal life of the patent O d. legal fees and amortized over 5 years or less
- Gray Company was granted a patent on January 1, 2018 and appropriately capitalized P450,000 of related costs. The entity was amortizing the patent over the useful life of 15 years. During 2021, the entity paid P150,000 in legal costs in successfully defending an attempted infringement of the patent. After the legal action was completed, the entity sold the patent to the plaintiff for P750,000. The policy is to take no amortization in the year of disposal. What amount should be reported as gain from sale of patent in 2021? a. 150,000 b. 240,000 C. 270,000 d. 390,000Advanced Technological Devices Inc. acquired a patent for $130,000. It spent an additional $19,400 successfully defending the patent in legal proceedings. Required: Determine the cost of the patent.Safehouse Company was granted a patent on a product on January 1, 2011 with a 20-year useful life. To protect the patent, the entity purchased on January 1, 2021 for P4,500,000 a patent on a competing product which was originally issued on January 1, 2016. Because of the unique plant, the entity does not feel the competing patent can be used in producing a product. What amount should be recorded as amortization of the compéting patent for 2021? a. 450,000 b. 225,000 C. 300,000 d. 0.
- Sandhill Corporation purchased a patent for $147000 on September 1, 2024. It had a useful life of 10 years. On January 1, 2026, Sandhill spent $41000 to successfully defend the patent in a lawsuit. Sandhill feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense at the company's December 31, 2026 year-end if the straight-line method is used? O $25480. O $33680. O $31720. O $34660.Banana Co. incurred P 350,000 of research and development costs to develop a product for which a patent was granted on January 2, 20x1. Legal fees and other costs associated with registration of the patent totaled P 100,000. On March 31, 20x6, Banana Co. paid P 150,000 for legal fees in a successful defense of the patent. What total amount is capitalized for the patent through March 31, 20x6?On September 30, 2016, Leeds LTD. acquired a patent in conjunction with the purchase of another company. Thepatent, valued at $6 million, was estimated to have a 10-year life and no residual value. Leeds uses the straightline method of amortization for intangible assets. At the beginning of January 2018, Leeds successfully defendedits patent against infringement. Litigation costs totaled $500,000.Required:1. Calculate amortization of the patent for 2016 and 2017.2. Prepare the journal entry to record the 2018 litigation costs.3. Calculate amortization for 2018.4. Repeat requirements 2 and 3 assuming that Leeds prepares its financial statements according to IFRS.